In a speech at the 2000 National Eisteddfod at Llanelli, Dafis called for a new Welsh language movement with greater powers to lobby for the Welsh language at the Assembly, UK, and EU levels.[1] Dafis felt the needs of the language were ignored during the first year of the Assembly, and that in order to ensure a dynamic growth of the Welsh language a properly resourced strategy was needed[1] In his speech Dafis encouraged other Welsh language advocacy groups to work closer together creating a more favourable climate in which using Welsh was "attractive, exciting, a source of pride and a sign of strength".[1] Additionally, Dafis pointed towards efforts in areas such as Catalonia and the Basque country as successful examples to emulate.[1]

Lord Elis-Thomas, former Plaid Cymru president, disagreed with Dafis' assessment, however. At the Urdd Eisteddfod Lord Elis-Thomas said that there was no need for another Welsh language act, claiming that there was "enough goodwill to safeguard the language's future".[2] His controversial comments prompted Cymdeithas yr Iaith Gymraeg to joined a chorus calling for his resignation as the Assembly's presiding officer.[2]

In 2002, Dafis announced he would step down from the Assembly at the 2003 elections, despite party leader Ieuan Wyn Jones having asked him not to do so. Soon after the elections in 2003, he announced his candidacy for Presidency of the party, but lost to Dafydd Iwan.